Microsoft Buys Rights to Hit Videogame Franchise

A promotional image for “Gears of War 3,” made by Epic Games. Microsoft acquired the rights to the franchise, and plans to develop it further.

Microsoft and Epic

Microsoft has purchased the rights to the hit videogame series, “Gears of War,” ensuring the popular franchise remains exclusive to its Xbox One console.

The Redmond, Wash., tech giant said Monday it acquired the hit videogame series from Epic Games, which is known both for the “Gears of War” space war titles, as well as its game development software for consoles and PCs. Microsoft said Rod Fergusson, a former director of production at Epic, will be joining Microsoft and helping with further development of the franchise.

Microsoft didn’t disclose how much it paid Epic for the rights to the game.

“This franchise, and these fans, are part of the soul of Xbox,” said Phil Spencer, Microsoft’s head of videogame development for the Xbox, in a statement. “By acquiring this franchise, Microsoft Studios will continue to offer them more of their favorite games and entertainment experiences from the ‘Gears of War’ universe.”

Microsoft has reason to continue building the videogame franchise. “Gears of War,” first released in 2006, has inspired multiple sequels and sold an aggregate 22 million units, grossing more than $1 billion, making it one of the top titles in the industry.

More importantly, the acquisition guarantees exclusive offerings for Microsoft’s new Xbox One console, which is battling Sony’s new PlayStation 4. Microsoft has said it sold three million units to consumers by the end of 2013; Sony says it sold 4.2 million units.

A deciding factor for many gamers is often the titles themselves, and Microsoft, Sony and Nintendo alike all use exclusive titles as incentive to buy their hardware.

Microsoft’s move with “Gears of War” is similar to its handling of “Halo,” one of the most popular videogames of all time. Microsoft took control of the rights to that game after Bungie, the series creator, spun out to create a new title on its own. “Halo 4,” the first entrant created by new Microsoft studio 343 Industries in 2012, sold nearly 9 million units according to industry tracker VGChartz, certifying it as a hit.

Microsoft said its Black Tusk videogame development studio will head up “Gears of War” development, and hopes to announce one of its newest products sometime this year.